These 24 stock market terms will help you get a head start in the market.
To begin with, the stock market is full of terminology and phrases that every investor or trader should be familiar with in order to avoid misunderstandings and confusion in their day-to-day dealings with the market. Twenty four Stock Market Terminologies and Terms:
1. Delivery:
The method of delivery is A key term: when we buy a share and hold it for one day, it is called “delivery.” And it turns into holdings, and it doesn’t matter how long you hold it or whether you will sell the share after one day. after one week and after six months. It’s totally your choice. After purchasing the share that we will hold for one day, the general rule is delivery.
2. Market Upswing:
The bull market Bullish and bearish trends are the same in the sense that a generally bullish market defines when the stock market is going up in a profitable manner as the share prices of the stocks rise. This is the term used to define when the market is high. Then we say it’s a bull market.
3. Bear market:
The bear market and the bearish trend have one thing in common: they are both the same when the market is continuously falling. When share prices are decreasing, it’s called a “bear market.”
4. Bid Price:
The bid price There is a maximum number of buyers willing to buy the shares. accepted the offer to purchase the stock at the bid price.
5. Ask Price:
The current asking price is The sellers are ready and willing to accept a price for their shares.
6. Spread between bid and ask:
The difference The difference between bid and ask represents the highest price paid by buyers willing to buy the shares and the lowest price paid by sellers. the lowest price at which sellers are willing to sell their shares
7. Limit Order:
The order is placed when you buy or sell a share price within a limit price, then you place a For example, if the market price of a share is 100 rupees, then you place A purchase order of Rs 98 will be executed when the price falls to Rs 98 in the market. price
8. market order:
The market is When you buy or sell a share at the market price, for example, if the price of a share is Rs 200, then you can buy and sell a share in the market. When you place an order, it will execute at the market price.
9. GTC:
GTC means good. Cancellation means the investor or trader places an order at a specific price If it’s not executed or active, the order will be cancelled.
10. Day Order:
If you buy or sell something on a particular day at a particular price, it doesn’t activate if it is carried out on that day because it is a day order.
11. IPO:
“IPO means the initial public offering occurs when the company enters the stock market to raise With their capital, they offer the shares in IPOs.
12. Primary Market:
primary market It is also known as an IPO, which occurs when a company sells its stock directly to the public. shares to the public without subsidiaries This is the first time the stock A company’s shares are offered to the public. Most of the IPOs are young, and smaller companies will issue shares to raise funds.
13. Secondary Market:
a secondary A market is a place where buyers and sellers exchange ownership based on the company’s past and future.
14. market capitalization:
Market Both capitalization and market capitalization refer to the total share value. The company is based on the market value of the shares and multiples of the shares. Then the total market price of the share will define
15. Trade Volume:
The trading volume is the total number of shares trading in the stock market of a particular company.
16. Blue Chip Investing:
Blue-chip Long-term stocks are those that have been in the market for a long time and have strong fundamentals. The company has very strong potential. Its track record is very good. performance; those are blue-chip stocks.
17. Broker:
The brokers are They are an institution or individual who is registered with the SEBI, the NSE, or the BSE. the intermediaries between the general public and the company
18. Stock Exchanges:
stock exchanges They are like a fish market where the buyers and sellers connect to do their stock transactions. There are two main stock exchanges in India. The Mumbai Stock Exchange and the national stock exchange
19. Portfolio:
the portfolio The portfolio is nothing but different kinds of stocks that we hold. a collection of all the stocks in their portfolio
20. Dividend
Dividend means If you are holding a stock for the long term, then the company gives you some percentage of the profit to the shareholder apart from the holders’ shares. The corporation may or may not have paid a dividend because of internal issues.
21. Index:
Before going to If we knew the index, we could identify each and every share in the stock market. Because there are 5500+ companies listed in the stock market, the index is fixed to identify the market’s performance from day to day. The BSE index represents India’s top 30 companies. and the NSE indicates the top 50 companies in India.
22. Market Value:
market value This means the present value of the share in the market is trading.
23. The monetary value
When the company enters the market, the stock exchange evaluates the company’s assets and liabilities and fixes the value per share. known as book value,
24. Volatility
Volatility This means the share price of a company is determined by how fast the stock moves up and down.